Systemax Inc. (NYSE: SYX) shares climbed 11.6% to $14.62 a day after the electronics retailer reported first-quarter income that beat analysts’ expectations. Volume for the stock was just shy of 151,000, better than triple its daily average.
Sales for the quarter ending March 31, 2011 totaled $929.9 million, or 2% better than its prior-year figure of $915.2 million. Operating income was down, however, to $18.6 million from $20.4 million in the first quarter of fiscal 2010. Diluted earnings per share (EPS) were $0.36.
Systemax CEO Richard Leeds said, “We had a solid start to 2011 that underscores the channel, product and geographic diversity that define Systemax. Our Technology Products business to business operations continue to perform well, particularly in Europe as the business climates in most of our locations appear to have stabilized.”
Leeds concluded, “In addition, the Industrial Products group had another outstanding quarter, delivering strong double digit growth from product expansion and other growth initiatives.”
Systemax sells personal computers, computer components and supplies, consumer electronics and industrial products through a system of branded e-Commerce web sites, retail stores, relationship marketers and direct mail catalogs in North America and Europe. The primary brands are TigerDirect, CompUSA, Circuit City, MISCO, WStore and Global Industrial.